One of the most convenient and affordable ways to find the missing funds for urgent needs is to apply for a loan in one of the Russian credit organizations. In order to determine which bank is better to take a consumer loan, it is necessary to take into account a variety of indicators – from the terms of processing and repayment to the maximum value of the credit line and the interest rate.
Definition of selection parameters
In the process of selecting the best loan offer, the future borrower must assess the consequences of signing the contract with the bank, overpayment of interest, the possibility of early repayment, the availability of bank terminals for depositing funds, security requirements, etc. In addition to the conditions for obtaining borrowed funds, that nominate various lending institutions to the candidacy of the borrower. Thus, the process of selecting a favorable loan requires careful study by the prospective borrower.
Almost all large banks in the portfolio of services have consumer lending programs. The conditions of fierce competition force lenders to constantly improve borrowed products, taking into account the interests of clients to the maximum. On the other hand, the bank wants to have guarantees of repayment of the debt with interest on time and in full.
As a result, among the offers of banks there are both standard loans and special conditions for certain categories of citizens whose reputation as a payer is impeccable, and the risk of default is minimal.
Questions solved when choosing a loan
Before proceeding to the selection, a person must determine the range of issues related to lending:
- Purpose of the loan (non-earmarked / car loan / mortgage).
- Terms of possible repayment.
- The possibility of using collateral.
- The presence of people willing to vouch for the payer.
Based on the answers to these questions, they select credit programs from among the currently active ones.
How to choose a bank?
Determining which bank is more profitable to take a loan, you should pay attention to the more familiar to the client organization. Most likely to get the most advantageous offer in those credit institutions with which the client is connected with other ways of cooperation. For example, if a client has a deposit in a given bank or a salary card has been issued, the candidate is considered reliable and has a greater chance of receiving large amounts at lower interest rates. The bank may offer preferential terms if the borrower does not use the bank for the first time.
If the conditions of the bank, with which the client has already cooperated, are not satisfied, or there are no such credit organizations, you should pay attention to consumer loans with standard terms.
Profitable loan options
Among the many credit products, it is recommended to pay attention to the banks that provide the most flexible conditions. For example, the repayment period does not have a strictly fixed duration, but is granted depending on the needs of the borrower. For a consumer loan, it becomes optimal up to 5 years. This makes it possible to choose a term based on the payment capabilities of the client.
The benefit of the banking proposal primarily depends on the full cost of the loan. This parameter was introduced relatively recently and allows you to visually show how beneficial it will be to conclude an agreement with a bank.
The full cost of the loan includes all payments, commissions, surcharges, rates that the payer inevitably must make in the process of repaying the loan. The total cost is calculated, like the base rate, as a percentage relative to the principal amount of the debt.
Parameters included in the total cost include:
- The amount of funds transferred to the client (principal).
- Interest overpayment is the amount paid for bank services.
- Commission for acceptance for consideration of the application and the issuance of funds.
- Commission for servicing an account or card.
- Associated costs (notarization of documents, conducting an independent appraisal, etc.)
- Making insurance.
All loan expenses are summarized and on an annualized basis are presented in the form of the total interest on the loan.
Requirements for borrowers
In addition to the parameters of the loan and the terms of registration, the priority is what chances the citizen has when submitting an application to the bank. As a rule, each bank has its own specifics of work, a special focus, on the basis of which the client base of the organization is determined.
Standard conditions for borrowers in most cases are as follows:
- Russian citizenship. The vast majority of lenders prefer to deal with the Russians, but there are also organizations that provide loans to foreign nationals;
- the presence of a permanent residence permit. Many lenders issue loans only if the client has a permanent residence permit;
- age requirements. A borrower can most often become a person over the age of 21, however, some banks also apply for loans to persons who have barely reached the age of majority. The range of age requirements – from 18 to 65 years;
- The maximum age of the borrower in most cases is limited to the onset of the retirement age, however there are a lot of offers for pensioners aged 70–85 years;
- Full time job. The main indicator of the solvency of the client is the presence of a stable labor income. The bank will consider the criteria for total seniority and the duration of work in the last place.
Types of consumer loans
Consumer credit can be obtained for a variety of purposes, but most often the offers of banks cover the following forms of loans:
- Acquisition of expensive goods by installments.
- Use of cards with borrowed funds for a certain amount.
- Personal offers.
- Express loans.
There are loans that are issued with collateral and without it. The property objects (real estate, cars) can be used as collateral, guarantors and other ways of providing guarantees are also involved.
Collateral is a measure that guarantees repayment of debt with interest, even if the borrower can not repay the loan. The most common case is security in the form of collateral
Choosing a bank for consumer lending: instructions for action
Work on the selection of the best loan includes several stages of selection. Adhering to the following instructions, you can quickly determine the list of the most profitable loans:
- Determining the range of banks providing consumer lending services.
- Clarify whether a citizen meets the criteria of the bank.
- Work with bank loan calculators posted on the official pages. By making the required parameters by term, income level, client category, you can get a detailed description of the conditions and the calculation of the approximate cost of the loan.
- Sending online applications to the most reliable banks, where you can take money on the best conditions.
- After receiving the response from the credit organization, determine the final loan version.
Often, only the general information on the provision of funds at interest is indicated on the creditor’s website, and only an addressed appeal will help to identify unrecorded expenses and benefits. It is possible that the bank will provide the borrower with good individual conditions within the framework of a special offer or put forward additional conditions for receiving funds.
After receiving information directly from the bank, you can choose the best bank and plan a visit to the branch for processing a loan.